Brazil Insights On the Ground

Hi folks,

Currently in Brazil for a month and am traversing 7 of the 26 states this country has.

I've been learning about the investment property markets and process here. Before doing a full write-up though, I thought to put the feelers out there to see if there's actually any interest from the community?

Brazil isn't a location that comes up very much when people look/think of foreign investment markets, but there could certainly be opportunity here.

Anyway, if there's interest please respond and I'll do a write up... when I'm not, you know, sipping Caiperinhas in my hammock and snorkelling in the rock pools

 

Do a field report on cf+ favelas. Try not to get mugged or kidnapped.

 

Sem problemas, apenas leve uma arma

 

Ah Sash - voce fala Portuges??

 

Apenas um pouco meu amigo

 

@gleid are you still in Brazil? Catch up with @C-mac

 

Hey all

Very interested in Brasil from many perspectives.

If it wasn't so corrupted and dangerous I would be typing this post from Sao Paulo as I have close links there and would live there.

Been there many times and it is a country of the greatest paradox. The most beautiful and kind people yet one of the most dangerous places on the planet. The culture of the wise guy trying to beat the system is rife and there is no confidence in the government to act in a way other than being corrupt

The red-tape is absolutely horrendous. Social problems from every angle.

South America is an amazing place but, IMO, there is not one square inch that is safe unless you are very, very rich, and still not really safe, just the opportunity to live in a fortified bubble.

I speak Portuguese to a reasonable level but my spelling is pretty lousy. If interested, explore the term ' arrastao ' ( in English it means to ' net ' as in prawning I think)

Having said the above, there is a vitality and warmth in the country that is rich in many ways.

Investment in Brasil, be very careful.

My heart is in Brasil but my head is in Australia.

Looking forward to any ensuing discussion.

Best to all

 

Hey Bunlee, thanks for your insights, I will post again with my insights too.

Definitely agree that security/safety is the single biggest issue here. But then one must ponder (with their 'investor' hat on and not their 'owner occupier' hat); if you arent personally living in it; and the building is as fully secure as possible; and your tenant is a local who understands the security/safety landscape, then if the dollars and cents stack up; this could be overcome if remotely holding property in this country.

Plus, there are some cities that are much much safer (and also present strong investment fundamentals too) such as Florienopolis and Curitiba; that are worth a look.

@Biz - ah the favelas. I know you joke, but a fair thing nonetheless to address in a Brazil topic/thread. Yeah, some cities have favelas (dangerous shanty-towns rife with poverty and violence, for those who dont know), but of course you wouldnt invest in these even if you could (which, you actually cant).

Look, 95%+ of Brazil I wouldnt even give a second look, but there are some places worth considering for those with a risk profile/appetite to consider it. For the investor who has completed their AU buying and is considering something more adventurous (high risk but high reward I.e. 10-30% gross yields) and is willing to dabble say 100k financed from their AUD offsets ( you would NOT get a local mortgage here, no way!!) It is worth a look.

When I do the write-up I'll share more context on my thoughts.

 

Ps @D.T. yup @gleid is one of my travel compadres here!

 

Hey C-mac

Love your interest / passion for Brasil.

Agree that as you move south it may get less dangerous (not more safe ) Curitiba and Florienopolis have in the past been considered less dangerous. Unfortunately the violence is everywhere and when it happens it is quick and ferocious.

Tune into 'cidade alerte ' or maybe a show called 'Brasil urgente' - not sure of the exact names - current affairs shows that highlight (graphically) the daily violence.

Our family has many properties in Sao Paulo but if I was investing there I would look at;

- Fully gated community houses
- High rise apartments congregated together in a complex with all the shopping needs fulfilled in the complex.

all the best

eu sinto muento saudade do Brasil

 

that sounds like a prison for the rich. . A lot of those are in South Africa (gated communities). if you have the appetite then you should invest . at one point i even thought Ukraine was good, buying the farmland there!

 

Not knowing much about Brazil and one day thinking of going to South America for tourism (and being very wary of doing so) , in general what is the cause of this?
Drug turf wars?
Wide gaps between rich and poor making people act out of desperation?
Crap law enforcement/corruption?

 

Sounds just like Greece but with less violence.

 

My dyslexia was getting the better of me - I thought what the hell are 'Dwarf rug warts'? & are they contagious?